EXECUTIVE EDUCATION
INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD
PRICING FOR PROFIT
OCTOBER 05-09, 2015
PRICING FOR PROFIT
OCTOBER 05-09, 2015
Given that a small increase of 1 per cent in realized prices can lead up to 11 per cent increase in profits, ge ng the
right price point and then rolling it out well is naturally important. While, pricing is the one marke ng decision that
directly impacts both the top line and the bo om line of firms and pricing decisions world over are considered cri cal
decisions for top management, the fact is, however, that many firms and managers lack a structured way to think
about and implement pricing in their firms. Pricing decisions tend to be based on a seat of the pants approach, or be
cost led or compe tor led; this may work upto a point but leads to a dead end. Thus, firms need to understand and
adopt well thought through pricing approaches in an increasingly compe ve environment where a rising propor on
of goods and services in India are sold in a “free” market. Even administered prices in some industry sectors provide
some leeway in pricing. In this milieu, it is important to develop and deepen managerial understanding of best
prac ce in pricing, different approaches to pricing, and customer responses to prices. This programme will explore
how a firm can op mize its prices given its strategic goals rela ng to profitability and/or market share. It will
encourage managers to think proac vely about pricing; to price appropriately according to the situa on keeping in
mind an understanding of how customers react to prices.
Participants
This programme aims at orien ng senior managers of private
and public sector firms toward se ng and managing the
right price levels for their products and services. These
persons could be from marke ng, finance, informa on
technology areas or at the general management level.
Managers who are engaged in developing pricing systems
and approaches in consumer markets and industrial markets
would find this programme useful. Sample industries include
hotels, airlines, energy, cruise liners, automobiles, fast
moving consumer goods, switchgears, restaurants, internet
service providers, consumer appliances, computers, bulk
drugs, retailing, and petroleum products among others who
would find this programme especially useful.
Objectives
§ To understand how consumer think about prices and to improve understanding of pricing approaches.
§ To develop a systema c framework for assessing, formula ng, and implemen ng pricing approaches.
§ To develop a proac ve approach to pricing.
Pricing decisions are affected by economic, marke ng, organiza onal, and psychological factors and must be made
within a prescribed legal framework. The programme revolves around (a) understanding how one may go about
making effec ve pricing decisions while keeping in mind these factors, (b) understanding the strengths and
weaknesses of different pricing approaches, (c) developing the thinking to choose the right pricing approach and right
price level, and (d) implemen ng the price approach in the face of compe ve situa ons and reac ons.
Content
§
§
§
§
§
§
§
Determining value and price response models
How customers view and react to prices
Neurophysiological insights into pricing
Cos ng, breakeven analysis and reac ng to high vola lity in costs
Different approaches to pricing
Value-based pricing
Dynamic pricing
§
§
§
§
§
§
§
§
Bundling
Two-part pricing
EDLP and promo ons
Pricing in the organized retail context
Sales force and pricing
Price framing, signaling, and price wars
What is the 'right' approach and 'right' price level
Organizing for and implemen ng the right pricing
Apart from lectures, case discussions, role plays, presenta ons and group discussions, the programme will provide an
opportunity to the par cipants to see current pricing approaches in different industries. There will also be group work
to develop pricing.
Faculty
Goutam Du a
Ashis Jalote Parmar
Shailesh Gandhi
Arnab K. Laha
Arvind Sahay - (E-mail: [email protected])
Faculty Chair – Pricing for Profit
§ Piyush K. Sinha
§ Sanjeev Tripathi
§
§
§
§
§
Nominations and Inquiries
Nomina ons should reach the Officer - Execu ve Educa on latest by September 21, 2015.
Organiza onal sponsorship is generally required, but can be waived in case the par cipant is likely to gain significantly
from the programme for personal improvement or greater job effec veness.
All nomina ons are subject to review and approval by the programme faculty (usually a er the due date for receiving
nomina ons). A formal acceptance le er will be sent to selected nominees accordingly. Nominees are requested to
make their travel plan only a er receiving the acceptance le er.
For nomina on forms and more informa on, please contact:
Officer - Execu ve Educa on
Indian Ins tute of Management, Ahmedabad
Vastrapur, Ahmedabad 380 015
Phone: +91-79-6632 4072-78, 4081
Fax: +91-79-2630 0352 (ExEd)/2630 6896 (General)
E-mail: [email protected] Website: www.iimahd.ernet.in/exed
Venue and Accommodation
The programme will be held at the Indian Ins tute of Management, Ahmedabad. Par cipants get full board and aircondi oned single room accommoda on on the Ins tute campus.
IIMA norms do not allow par cipants to have any guest stay with them during the programme.
Programme Fee and Payment
Rs. 110,000 (+14.00% Service Tax) per person for par cipants from India and equivalent US Dollars for par cipants
from other countries. The fee includes tui on fees, programme materials, board and lodging.
The programme fee should be received at the Execu ve Educa on Office latest by September 21, 2015. In case of
cancella ons, the fee will be refunded only if a request is received at least 15 days prior to the start of the
programme. If a nomina on is not accepted, the fee will be refunded to the person / organiza on concerned.
The programme fee can be paid in one of these three ways:
A. Electronic Fund Transfer:
1. For credit to Savings Bank A/c No. 9369EEP, YES Bank Limited, C. G. Road Branch, Ahmedabad
(IFSC: YESB0000007, SWIFT Code: YESBINBB)
2. Name of Remi er:_____________(Please men on the name of the sponsoring organiza on)
3. Purpose of Remi ance: Pricing for Profit
4. IIMA Permanent Account Number (PAN): AAATI1247F
5. IIMA Tax Deduc on Account Number (TAN): AHMI00189A
6. IIMA Service Tax Registra on Number: AAATI1247FST001
A er making the payment, please e-mail us the complete transac on details immediately so that we can connect
your remi ance to your nomina on.
B. Payment Gateway
Please visit IIMA website (www.iimahd.ernet.in/exed) for more informa on.
C. Demand dra /cheque payable at par at Ahmedabad
The cheque/dra should be in favour of “Indian Ins tute of Management, Ahmedabad” and sent directly to
Execu ve Educa on Office through courier or speed post.
Group Discount
§ Any organiza on sponsoring 3 or 4 par cipants to a programme will be en tled to a discount of 7% on the
programme fee payable.
§ Any organiza on sponsoring 5 or more par cipants to a programme will be en tled to a discount of 10% on the
programme fee payable.
§ Any organiza on sponsoring 25 or more par cipants across all the programmes in one academic year will be
en tled to a discount of overall 15% on the programme fee payable.
The above discounts will be applicable only when the requisite numbers of par cipants actually a end the
programmes.
Alumni Association
Please note that par cipants who are a ending short-dura on Execu ve Educa on Programmes for the first me, on
or a er April 1, 2012, will have to a end a total of 21 days in one or more programmes to be eligible for alumni status
and alumni iden ty card, both of which will be awarded on payment of one- me alumni fee of Rs.10,000.
Indian Institute of Management, Ahmedabad (IIMA)
IIMA was set up by the Government of India in collabora on with the Government of Gujarat and Indian industry as an
autonomous ins tu on in 1961. The Ins tute provides educa on, training, consul ng, and research facili es in
management.
Major Programmes Offered by IIMA
Two-Year Post-Graduate Programme in Management (equivalent to MBA)
Two-Year Post-Graduate Programme in Food and Agribusiness Management (equivalent to MBA)
Fellow Programme in Management (equivalent to Ph.D.)
One-year Post-Graduate Programme in Management for Execu ves (PGPX)
Execu ve Educa on Programmes (EEP) for industry, business, agricultural and rural sectors, and public systems
covering educa on, health, transport, and popula on
§ Faculty Development Programme for teachers in universi es and colleges
§
§
§
§
§
Indian Ins tute of Management, Ahmedabad
Vastrapur, Ahmedabad 380015, Gujarat, INDIA.
Phone: +91-79-6632 4072-78, 4081
Fax: +91-79-26300352 (ExEd) / 26306896 (General)
E-mail: [email protected], Website: www.iimahd.ernet.in/exed